PF Archive

Power

01 11 2005

Reliant NY buyers mandate
US Power Generating and Madison Dearborn have mandated four banks to provide financing for their purchase of the Reliant New York power assets. BNP Paribas, Goldman Sachs, Merrill Lynch and Morgan Stanley, will arrange an acquisition facility to back the $975 million purchase of three power plants located in Queens and Brooklyn. Goldman and BNP were financial advisers to the new owners on the purchase.
The assets consist of the baseload Astoria units, which date back to the 1950s and 1960s and have a capacity of 1,090MW, Gowanus, with 494MW, and Narrows, with 271MW, the last two of which are gas-fired peaker units and benefit from reliability contracts. The plants will be protected from competition by the New York State Public Service Commission's insistence that 80% of New York City's electricity must be generated within city limits and the difficulties with building new plants in the city.
The purchase will need to go through a lengthy approvals process, and the financing is unlikely to close before around February 2006. The deal is likely to take the form of a combination of first and second lien term B debt, and will also benefit from a short-term hedge from Morgan Stanley Capital Group, which the buyers are looking to build on.
Loy Yang refinancing mandates
Loy Yang Power has mandated 10 banks to lead arrange and underwrite its A$2.36 billion ($1.72 billion) refinancing. The joint lead arrangers are ABN Amro, ANZ Investment Bank, Bank of...

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